Ethical Implications of Facebook's Data Breach: A Case Study Report

This report examines the Facebook data breach related to Cambridge Analytica, providing a detailed analysis of the events, actions, and decisions considered unethical. It offers context, including the business model of Facebook, the purpose of data collection, and the affected stakeholders, primarily users whose data was harvested without consent. The report outlines the Cambridge Analytica issue, detailing how user data was obtained and misused, and it discusses potential solutions for Facebook, such as increased security measures and stricter data access policies. It also explores the ethical principles violated, the local and global impacts, and how the issue has been addressed, including legal and regulatory responses. The report emphasizes the importance of data privacy, ethical business practices, and the need for robust protections against misuse of personal information in the digital age. The report also compares the ethical breaches in the case with other events like the New Zealand Mosque incident and provides recommendations for the future.

Running Head: Privacy Breach: Facebook
PRIVACY BREACH OF FACEBOOK
CAMBRIDGE-ANALYTIC CASE
System04128

Privacy Breach: Facebook
Table of Contents
Introduction................................................................................................................................2
Business Model of Facebook.....................................................................................................2
Purpose of the Information.........................................................................................................3
Affected Stakeholders................................................................................................................3
Cambridge Analytical Issue.......................................................................................................4
Solutions for the Company.........................................................................................................5
Comparison................................................................................................................................7
Ethical Issue...............................................................................................................................7
New Zealand’s Mosque Incident...............................................................................................8
Recommendation........................................................................................................................8
Conclusion..................................................................................................................................9
Bibliography.............................................................................................................................10
1 | P a g e

Privacy Breach: Facebook
Introduction
General have turned out to be generally well known, explicitly on the internet based
life site Facebook. A large portion of them appears to be not political and is normally based
around the client, which makes them amusing to impart to family and companions.
Unbeknownst to the individuals who host enjoyed third-gathering tests and applications,
Facebook is presently being blamed for utilizing these apparently honest recreations to reap,
break down and sell the data from their clients' profiles. Mark Zuckerberg, Eduardo Saverin,
Dustin Moskovitz and Chris Hughes founded Facebook in 2004 when they were in Harvard
College. It became the largest social networking website in the world (Fewkes & Mccabe,
2012). In the first year of its establishment, it got more than 1 million users. Since then the
users increased rapidly and in 2018 the users crossed 2 billion (Sraders, 2018). As it is the
biggest social network giant having its presence all over the globe, Facebook have to
company with the domestic laws of various countries. In the past, there were various minor
issues that were then settled down (Lamp, 2017).
Business Model of Facebook
In 2004, Mark Zuckerberg, Chris Hughes, Educardo Saverin and Dustin Moskovitz
founded the Facebook in Harvard. In the first quarter of 2010, 34.8 percent of all users of
internet users were accessing Facebook. In 2011, more than 600 million people were using
Facebook specially the students. The main concept of Facebook was to connect the college
and school-going students. For login, the students were required to have a valid email id
through which they can get access for login (Krombholz, Merkl, & Weippl, 2012). When a
person gives information regarding to his interest and workplace then Facebook will show the
people of same interest for friend suggestion. The main concept of Facebook is to data
generation. They get more data as people share more and this lead Facebook to give proper
idea to advertisers (Liao, Hsian, & Wu, 2014). Facebook through its distinct ways is
influencing its users to give more information of their social life. People express their views
on various topics on daily basis on Facebook. It is the biggest platform where people express
their views. The advertisers want vast information so that they can infer what people want
and Facebook is providing this information to them. It is helping the people in large way.
Facebook is also collaborating with private authorities for internet access in underdeveloped
areas. This movement is internet.org. When Facebook acquired WhatsApp and Instagram,
2 | P a g e

Privacy Breach: Facebook
their users increased significantly. They are getting revenues from these advertisers and the
cost of advertising on Facebook is high (Garfield, 2008).
Purpose of the Information
This is done for the advertisement purpose and the main source of income for
Facebook is the money they are getting from the advertisers. The Facebook has mentioned in
its privacy policy the way they store the information and the purpose of the information. The
Facebook give access to advertisers to use the data collected from the users that include date
of birth or any other personal data and they select particular and specific audience for the
advertisement (Fuchs, 2011). The investigations in the case revealed that up to 87 million
clients’ data were inappropriately imparted to Cambridge Analytica. A political counselling
firm worked for presidential crusade of Donald Trump. FTC specialists have been analysing
Facebook’s lead in the Cambridge Analytica case and a progression of extra protection
accidents made open as of late. Facebook is the biggest online social platform, provides
variety of leaders for the clients. (Cambridge Analytica: A question of ethics not legality,
2018). Through the utilization of these administrations, information diggers and promoters
collect the information for every person and their friends on Facebook. Maybe considerably
progressively profitable are the more than 52,000 credits that Facebook uses to tag its clients.
A portion of these traits is as dark as “claiming to content out in the open”. By masterminding
its customers, Facebook makes it more straightforward for promoters to contact their optimal
social event of individuals, saving that money. (Bauer, 2018).
Affected Stakeholders
The users are who downloaded and played the quiz were the primary victims of the
breach. Other victims were the people who were the Facebook friends of the primary victims.
The personal information of all these victims was used without their consent (Subirats,
Rehuera, Gomez-Zuinga, & Armayones, 2018).
The founder of the Facebook Mark Zuckerberg admitted that there is breach of trust
and privacy on their part and they take full responsibility of the incident. Zuckerberg took
personal liability and responsibility that there was mistake on their part for allowing
malicious persons to get access to information of data. No person was dismissed after the
incident of Cambridge Analytica (Five Content Types for a Buyer-Centric Content Marketing
Strategy, 2018). He moreover said that the company did not take sufficient measures that
3 | P a g e

Privacy Breach: Facebook
could have prevented the abuse of information. The Facebook have been under the radar over
the misuse of data. Newspaper giants like The Guardian and The New York Times published
that Cambridge Analytica had use private and personal that was recovered illegally via a quiz
app and it helped Donald Trump in the election (Goolden, 2018).
The outrage for against Cambridge Analytica and Facebook was encouraged by data
being given to a pariah to ‘academic purposes’. Conveying this data to Cambridge Analytica
was doubtlessly misleading. This had incited calls for progressively essential rule of the
acquirement and use of online customer data (Heimbach, Gottschlich, & Hinz, 2015). While
strong, well-thought rules can turn away this kind of misleading movement of data, rule alone
likely won't be satisfactory, in an examination setting, or something different. Procedures and
rules, despite when clung to, may not predict advances in research, and disregard to totally
verify individuals. It may not be adequate for masters or warning gatherings yielding ethics
support for research to simply seek after the ethics rules (Zahedi & Costas). It intends to close
down "accomplice classes” an item that "empowers outsider information suppliers to offer
their focusing on legitimately on Facebook." "While this is basic industry practice, we trust
this progression, slowing down throughout the following a half year, will help improve
individuals' security on Facebook," the announcement read (Shackelford, 2019).
Cambridge Analytical Issue
Facebook got into deep troubles when Cambridge Analytica Data Scandal came into
limelight in 2018. In 2018, Facebook was apprehended into the major data breach scandal. In
this scandal, Cambridge Analytica retrieved personal data of 87 million Facebook users
without taking their assent. The illegally gathered information was supposedly used in the
favour of Donald Trump who was a candidate for the President at that time. Moreover, the
data was used illegally to the Brexit results in favour of Vote Leave Campaign (Isaak &
Hanna, 2018). Facebook asked Cambridge Analytica to erase the data. These orders were
given several months after the incident of data breach. After giving the instructions to delete
the data, they did not crosscheck whether Cambridge Analytica deleted the data or not. The
incident led users, lawmakers and market researchers to go against the Facebook. The shares
of the company went down significantly. Several lawsuits were filed against the breach of
privacy and security (Tarran, 2018).
4 | P a g e

Privacy Breach: Facebook
A researcher built personality quiz on Facebook that asked the participants of the quiz
to download the application. Near about 25 million Facebook, users downloaded the quiz
application named ‘thisismydigitallife’. To start the quiz the users had to give consent to
application so that they can access users’ and their friends’ Facebook profiles. More than
270,000 users participated in the quiz and the app got the access of profiles of these users.
They can get the information of users’ gender, date of birth, food preference, and political
preference and in some cases, the phone numbers as well. The developer of the app Mr.
Kogan than gave the data to the political company that is Cambridge Analytica in
consideration of 7 million dollars. Then data of 30 million users was match with other records
and it lead to construction of personality profiles of these users. These voters were divided
through five personality test. These tests are Openness, Conscientiousness, Extraversion,
Agreeableness and Neuroticism (OCEAN) (Kelly, 2004). According to OCEAN, personality
behaviour was analysed and it influenced the American Presidential elections.
Solutions for the Company
Zuckerberg said that Facebook would absolutely gain from this occurrence. He
additionally said that they'll expect to make the Facebook people community a sheltered spot.
Facebook will “inspect all applications that approached a lot of data “before they changed
their “part to fundamentally reduce the access of data in 2014. Zuckerberg further reported
that Facebook will likewise “direct a total review of any application with worried
movement”. Zuckerberg likewise said that Facebook would ‘boycott any engineer’ that “does
not consent to an intensive review” from the web based life stage. Facebook wish to enable
the clients and guarantee that they can without much of a stretch oversee information the
applications gets to (Ward, 2018). Zuckerberg said that Facebook needs its clients to
comprehend what information consents they have given to the applications to utilize. One
month from now, Facebook will give an apparatus "at the highest point of the News Feed"
that will demonstrate the clients of the Facebook-claimed application have used and “a
simple procedure to withdraw those applications' approvals” to their data (Facebook Data
Breach: Why It Happened and What it Means for the Future, 2018).
There is a need for extension of data driven plans. It has strong organization,
unequivocally over the read-just records and enlightening accumulations. Encryption gives
this kind of control; regardless, it must be moral encryption. Thusly there, the risk of data
crack is less and associations are shielded from the data break costs (Graham, 2018). A
5 | P a g e

Privacy Breach: Facebook
portion of different measures to evade information break incorporate access control, security
robotization, screen information dangers and rupture reaction methodologies that will trigger
a brisk reaction to information ruptures and help in diminishing the mischief it would cause it
left unaddressed. There are even alternatives for electronic mark programming and endpoint
security arrangements. These innovations must be brought without hesitation if the workforce
at associations is very much aware of these updates and its convenience. In this manner,
legitimate ventures must be made on IT groups. There is an incredible requirement for
however many capable experts as could be expected under the circumstances (Hart, 2018).
The choice bases on the possibility that Facebook has less power over where and how
outsider information aggregators gather their information, which is unsafe. Cambridge
Analytica’s fiasco could not have been stopped, yet the procedures could have sufficient side-
effects for broader computerized publicizing biological system. Should others in the business
pursue Facebook's lead and separation themselves from information agents, it could likewise
mean an expansion in straightforwardness into their work with individual information (Mui,
2011). Zuckerberg said that the organization would expand the quantity of individuals
chipping away at security from 10,000 to 20,000. The issue of Cambridge Analytica is
covered under The International Covenant on Civil and Political Rights covers right to
privacy (International Covenant on Civil and Political Rights, 2019). Another international
instrument that covers the right to privacy issue is Universal Declaration of Human Rights of
the United Nations (Universal Declaration of Human Rights). The membership of these
international instruments is optional the law will not be applicable in those countries. They
provide better guidelines for Facebook on the protection of user data. Further Zuckerberg
said that they will implement the protections provided under General Data Protection
Regulations of European Union (The EU General Data Protection Regulation (GDPR) is the
most important change in data privacy regulation in 20 years., 2019). They will increase
transparency in advertisement related to politics. Zuckerberg guaranteed that organization
will implement the insurances of the European Union’s General Data Protection Regulation
to every clients around the globe. It will need political publicists to give extra
straightforwardness, as another weapon in the detailed “weapons contest”. What's more, the
organization is banding together with scientists to all the more likely comprehend its job in
races.
After the issue of Cambridge Analytica, Facebook should stop providing data to the
third parties as it can lead them in serious trouble again. The private information and data of
6 | P a g e

Privacy Breach: Facebook
an individual can be misused at any place. However, if they will not provide data to the
advertisers then then revenue which they are generating will call down significantly.
Therefore, to solve this issue, the Facebook should put some restrictions on the advertising
companies for using the information. When the data is provided to these companies, they
should sign the deed that they will not use the information for any mala-fide intention. If
there is breach of duty by the advertising company and there is leak of information from their
side then Facebook will not be held responsible for the alleged breach.
Comparison
Like Facebook, other social media platforms are Twitter, Instagram and YouTube.
Almost 95% of the social media users are on these three platforms. In Twitter, the user can
tweet with 140 or less characters and concept of hashtags have come out of it (Gomez &
Torres, 2010). People between age 18 and 29 are common users and most users are from
Africa and America (Vallee, 2018). YouTube is a social media platform in which people
come to see the videos of their choice. YouTube has videos of every field and topic (Wall,
2009). People of every age group access it. It is said that in every minute 100 hours of videos
are uploaded and it has one billion viewers every month. There are large amount of videos
are available so it is quite difficult to find the video which a person wants to see unless he
knows the exact name of the video (Margarita, 2019). Instagram is now one of the popular
and active social network sites in the world. It provides unlimited photos upload and video of
3 to 15 seconds (Jackson & Luchner). It is mostly popular among the women who are under
age of 35. These three websites has so much of internet traffic and it can be said that the
people nowadays prefer digital media, the social media, and their content influence them
(Shane-Simpson, Manago, Gaggi, & Gillespie-Lynch, 2018).
Ethical Issue
Ethics can be termed as norms of right and wrong which directs or instruct the people
what do to and the way to do in purview of responsibilities, rights, duty, fairness and others
(Velasquez, Andre, Shanks, S.J., & Meye, 2010).
It was the duty of the Facebook to give protection to millions of users’ information, as
it was a fiduciary relationship between Facebook and the users. The security breach of
privacy is the breach of trust and confidentiality (Golijan, 2012). The main ethical issue here
arises is the protection of privacy of its users which the Facebook failed to give protection.
7 | P a g e

Privacy Breach: Facebook
Privacy is highly related to trust. Privacy’s main idea is how to control the private
information of the users. This will lead to the trust and believe among the users and owners of
the websites. Trust will be increase due to sharing of lot of information but when the issue of
privacy comes into the question then trust will be lost eventually (O'Brien & Torres, 2012).
Facebook or websites users are not aware of the fact that data is used by these platforms for
several purposes.
What people do not know is that the information, images and the use of ‘Like’
button collects the data and saved as ‘bottom line’ and can be used for advertisement and
other purposes like the Cambridge Analytica used in the elections in favour of Donald
Trump. Facebook could have initiated various features that could have protected the
information of the users but it did not opt for it. There are various ethical issues related to
Facebook application. The application takes the control of user’s phone when they give
access to the app for using of photos, videos and messages. The app collects the data of the
user without the consent and knowledge. The users do not know that the application runs in
the background and it is collecting the data. The Facebook app sometimes takes help of third
party cookies that can risk user’s privacy because the data can be accessed by the people
unethically (Barnes, 2006).
New Zealand’s Mosque Incident
Recently, an anonymous person livestream his attacks on Facebook when he was
firing in two mosques on 15 March in Christchurch. This incident took the lives of 51 people.
The livestream feature of Facebook was highly criticised by people around the globe. After
this incident, the company said that they would put restrictions temporarily for those
individuals who have failed the guidelines and rules on the site. Person who has done offence
for the first time will be suspended for particular period to do live streaming. Facebook have
removed 1.5 million videos, which contains the footage of the attack (Facebook makes
change to live streaming rules that would’ve helped prevent the New Zealand mosque
shooting video from spreading, 2019).
8 | P a g e

Privacy Breach: Facebook
Recommendation
It is insufficient, however, to depend on the rules and framework related to law. The
International Covenant on Civil and Political Rights and Universal Declaration of Human
Rights incorporates a privilege to protection. In any case, it is normal for nations to avoid
their bargain obligations. What's more, endeavours to elucidate the privilege to security in the
advanced age have been argumentative. Facebook can start to working on giving extra
protection to the users. It has large control in the market control and it can make Facebook an
important patron for security and cybersecurity around the world. The association could, for
example, bolster tries to modernize worldwide security law. Facebook could in like manner
require its traders and assistants to give magnificent cybersecurity affirmations to customers
and their information. It could, basically, lead an overall race to the top and in the process
advance computerized concordance. In a joint exertion with other development associations,
those undertakings would simply will undoubtedly succeed. Facebook formally, and openly,
exhibit that the organization comprehends the huge job it plays in worldwide undertakings. A
decent begin would be for the organization to pursue other businesses' models by freely
unveiling its cybersecurity and information security rehearses as a major aspect of its
incorporated corporate report.
Conclusion
Other intelligent subsequent stage for Facebook will be to furnish clients with paid
membership alternative and in this way enable them to totally quit having their own
information bundled and sold for promoting. In any case, that makes an alternate moral issue,
because more individuals that are unfortunate would not have the option to stand to maintain
their information secrete and can access Facebook. The principle approach to deliver the
issue is to change the relationship and make individuals to pay for their information. One
financial analyst evaluates the esteem could be as much as 1,000 dollars per annum for the
normal web based life client. Proposed new laws could in like manner help. The CONSENT
Act, for example, might require data gathering relational associations to get clear consent
from customers before having the choice to "use, offer or pitch any near and dear
information." The Federal Trade Commission would maintain those principles. Lawmakers
could go progressively far off still and let the FTC power greater fines for data breaks, make
stages committed for encouraging unlawful information or even anticipate that associations
should develop moral review sheets like universities.
9 | P a g e

Privacy Breach: Facebook
Bibliography
Barnes, S. (2006). A privacy paradox: Social networking in the United states. firstmonday.
Bauer, S. (2018, April 9). Facebook data sweep raises legal and ethical issues. Retrieved
from The Lawyer's Daily: https://www.wolfelawyers.com/resources/Facebook-Data-
Sweep-Raises-Legal-and-Ethical-Issues---The-Lawyer's-Daily.pdf
Cambridge Analytica: A question of ethics not legality. (2018, March 26). Retrieved from
Decision Marketing: https://www.decisionmarketing.co.uk/views/cambridge-
analytica-a-question-of-ethics-not-legality
Facebook Data Breach: Why It Happened and What it Means for the Future. (2018, October
16). Retrieved from Techfenix: http://techgenix.com/facebook-data-breach/
Facebook makes change to live streaming rules that would’ve helped prevent the New
Zealand mosque shooting video from spreading. (2019, May 15). Retrieved from
CNBC: https://www.cnbc.com/2019/05/15/facebook-restricts-live-feature-citing-new-
zealand-shooting.html
Fewkes, A., & Mccabe, M. (2012). Facebook: Learning Tool or Distraction? Journal of
Digital Learning in Teacher Education, 92-98.
Five Content Types for a Buyer-Centric Content Marketing Strategy. (2018, November 13).
Retrieved from AMA Marketing News:
https://medium.com/ama-marketing-news/the-murky-ethics-of-data-gathering-in-a-
post-cambridge-analytica-world-33848084bc4a
Fuchs. (2011). New Media, Web 2.0 and Surveillance. Sociology Compass, 134-147.
Garfield, B. (2008). Your data with destiny; It's elementary, my dear Zuckerberg. Bob
Garfield solves the mystery of a business model for Facebook and points the way for
10 | P a g e

Privacy Breach: Facebook
marketers in a post-advertising age.(News)(Facebook Inc.)(Viewpoint essay).
Advertising Age, 1.
Golijan, R. (2012, May 3). Consumer Reports: Facebook privacy problems are on the rise.
Retrieved from NBC News: https://www.nbcnews.com/technology/consumer-reports-
facebook-privacy-problems-are-rise-749990
Gomez, L. M., & Torres, C. G. (2010). Twitter. Revista Colombiana de Anestesiología, 539-
540.
Goolden, S. G. (2018, March 28). The Ethical Dilemma of the Facebook Privacy ‘Breach’.
Retrieved from The Carolinian: https://carolinianuncg.com/2018/03/28/the-ethical-
dilemma-of-the-facebook-privacy-breach/
Graham, M. (2018, April 13). Facebook, Big Data, and the Trust of the Public. Retrieved
from Practicle Ethics: http://blog.practicalethics.ox.ac.uk/2018/04/facebook-big-data-
and-the-trust-of-the-public/
Hart, L. (2018, December 20). Facebook: A Case Study in Ethics. Retrieved from CMS Wire:
https://www.cmswire.com/digital-marketing/facebook-a-case-study-in-ethics/
Heimbach, I., Gottschlich, J., & Hinz, O. (2015). The value of user’s Facebook profile data
for product recommendation generation. Electronic Markets, 125-138.
International Covenant on Civil and Political Rights. (2019). Retrieved from ohchr:
https://www.ohchr.org/en/professionalinterest/pages/ccpr.aspx
Isaak, J., & Hanna, M. J. (2018). User Data Privacy: Facebook, Cambridge Analytica, and
Privacy Protection. Computer, 56-59. Retrieved from IBS Centre for Management
Research:
http://www.icmrindia.org/casestudies/catalogue/Business%20Ethics/BECG160.htm
Jackson, C., & Luchner, A. (n.d.). Self-presentation mediates the relationship between Self-
criticism and emotional response to Instagram feedback. Personality and Individual
Differences.
Kelly, W. E. (2004). The "OCEAN" and the night-sky: relations between the five-factor
model of personality and noctcaelador.(openness to experience, conscientiousness,
11 | P a g e